Tokenomics

BlockMesh operates on a token economy powered by its token, $MESH. The $MESH token serves multiple purposes within the ecosystem, including:

Sustainable Token Economic Model for $MESH

The $MESH token serves as the backbone of the BlockMesh ecosystem, powering its decentralized AI monitoring, and multiple other applications within the network. This model is designed to incentivize participation, ensure network stability, and promote long-term sustainability through a balance of transaction fees, staking mechanisms, node incentives, and governance.

Key Components of the $MESH Economic Model:

1. Transaction Fees:

   • Usage-Based Fees: Users of BlockMesh services, such as decentralized AI monitoring, pay transaction fees in $MESH tokens. This includes fees for AI DAM tasks, circumventing geo-blocks, and other network services.

   • Dynamic Fee Adjustment: To maintain affordability and encourage widespread use, transaction fees will be dynamically adjusted based on network demand and usage intensity. A portion of the collected fees is redistributed to node operators as rewards, while the rest is burned to reduce token supply, enhancing token value over time.

2. Staking:

   • Optional Staking for Enhanced Earnings: Although staking $MESH is not mandatory for node operators, those who choose to stake more $MESH tokens are rewarded with increased traffic allocation. This leads to higher revenue potential, as staked nodes are prioritized in the distribution of monitors.

   • Staking Rewards: Users who stake receive additional $MESH tokens as rewards, which will be distributed over the staking period. This mechanism not only incentivizes long-term commitment but also enhances network security by encouraging node operators to maintain their stake and continue supporting the network.

3. Node Incentives:

   • Performance-Based Rewards: Node operators are compensated in $MESH for maintaining uptime, rewards are scaled based on performance metrics, including the quality of service, node reliability, and data integrity.

   • Sustainability Bonus: To promote consistent participation, nodes that maintain a high level of performance over extended periods receive bonus $MESH tokens. This encourages nodes to stay active and uphold the network’s integrity and stability.

4. Governance:

   • Decentralized Decision-Making: $MESH holders will be granted voting rights, allowing them to participate in the governance of the network.

   • Incentives for Participation: To encourage active governance participation, $MESH holders who vote on proposals will receive a small reward in $MESH tokens.

5. Sustainable Tokenomics:

   • Deflationary Mechanisms: A portion of transaction fees will be burned periodically to reduce the overall supply of $MESH, creating a deflationary effect that enhances token value over time. This aligns the incentives of all participants—users, node operators, and token holders—towards maintaining a healthy, growing network.

   • Treasury and Reserves: A percentage of fees and rewards are allocated to the treasury, which is used to fund ongoing development, marketing, and expansion efforts. This reserve ensures that BlockMesh can sustainably grow and adapt to market needs over time without compromising the value proposition to its users.